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US inflation accelerates as energy costs push up wholesale prices

September consumer prices rose 3.7% from a year earlier, up from August, while producer prices jumped 6.3% annually, the largest gain since 2022 and above forecasts.

By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .

This story is no longer being updated. It reflects reporting up to .

What happened

Inflation in the United States picked up in September, with annual consumer inflation reaching 3.7% after 3.4% in August, as higher energy prices spread into other parts of the economy. Wholesale prices then rose 6.3% over the year, their biggest gain since 2022 and well above the 5.5% economists had expected. Investors have shifted their views on a possible Federal Reserve rate hike, with the chance of one falling below 30%.

Why it matters

They also say businesses were hit harder by inflation last month than consumers were.

Timeline

  1. Oct 15, 3:52 AM ET: U.S. Treasury yields declined after the September inflation reading came in hotter than expected.
  2. Oct 15, 8:32 AM ET: September producer prices were reported to have risen 6.3% annually, the biggest gain since 2022.
  3. Oct 15, 9:49 AM ET: Odds of a Fed rate hike edged down, with chances now below 30%, almost four percentage points less than on Wednesday.
  4. Oct 15, 12:22 PM ET: Trump said tariffs 'cause wealth' while downplaying the negative economic impact of rising inflation.
  5. Oct 16, 4:13 AM ET: U.S. stock futures eased as hot core CPI data dented hopes for rate cuts, with investors adjusting to interest rates staying restrictive for longer.

Coverage

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